Key Takeaways
- From Ukraine funding defense efforts to Venezuela escaping hyperinflation, crypto is being used as emergency tools in declining economies.
- In countries like Nigeria and Venezuela, citizens are turning to stablecoins like USDT to preserve purchasing power.
- Pakistan’s bitcoin mining strategy and Bolivia’s short-lived crypto-for-fuel plan show that while crypto offers economic potential, policy uncertainty and infrastructure challenges remain significant obstacles.
As traditional financial systems continue to buckle under the weight of global economic instability, crypto has emerged as an increasingly vital savior.
Once dismissed as speculative assets, crypto is now playing a critical role in stabilizing faltering economies.
From war-torn Ukraine leveraging crypto donations to fund defense and aid efforts, to Latin American nations like Venezuela using stablecoins as inflation shields, crypto is rapidly evolving into a powerful financial tool for survival.
Ukraine: Crypto Donations for Defense and Aid
After Russia launched its invasion of Ukraine in February 2022, the country’s financial infrastructure faced immediate upheaval.
As the global banking system struggled to respond, the crypto network was swiftly mobilized, deploying tens of millions of dollars in digital assets.
The Ukrainian government published wallet addresses on X shortly after the invasion, calling for donations in Bitcoin (BTC), Ethereum (ETH), and Tether (USDT).
“Stand with the people of Ukraine. Now accepting cryptocurrency donations. Bitcoin, Ethereum and USDT,” the government posted on X.
The response was immediate and substantial: over $69 million in crypto was raised from thousands of donors by March 2022, according to research firm Elliptic.
As of mid-2025, that number has climbed well over $300 million, with the funds being used to procure military gear, drones, food rations, and medical supplies.
Nigeria: Crypto for Remittances and Trade
Nigeria, Africa’s most populous country, has emerged as one of the world’s fastest-growing crypto markets despite its declining economy.
Amid a severe cash shortage, millions of Nigerians are turning to stablecoins like USDT to preserve value and facilitate payments.
Peer-to-peer trading platforms have exploded in popularity, enabling billions of dollars in annual on-chain transactions.
Alex Lakatos, CTO at Interledger Foundation, told CCN that traditional cross-border cash payments and transactions in Nigeria are costly.
“Cryptocurrencies like stablecoins present an attractive solution to these barriers by speeding up settlement times, slashing high fees, and eliminating third-party mediators to overcome many of the complexities and inefficiencies of traditional payment rails,” Lakatos said.
In 2022, the value of Bitcoin traded on LocalBitcoins and Paxful grew from $32 million in January to over $44 million in August, Quartz reported.
According to Chainalysis, Nigeria ranks among the top 10 countries globally in crypto adoption, driven largely by remittances and small-scale trade.
Rob Downes of Absa Group told Chainalysis that stablecoins are a “game changer” for South Africa, helping individuals send money to family members abroad or cover daily expenses.
Venezuela: Monetary Alternatives
Venezuela has increasingly turned to crypto as an alternative to its rapidly depreciating economy.
Stablecoins offer locals a haven from the volatility of the bolívar, with USDT and similar assets now widely used for everyday transactions.
James Lei, Chief Operating Officer at Sparrow, told CCN that crypto has become a survival tool in Venezuela, being used for everything from food to rent.
“When inflation spirals and the national currency becomes unreliable, people turn to stablecoins like USDT because they hold their value day to day,” Lei said.
“I’ve seen it used to pay for everything from food to rent, often through peer-to-peer apps that bypass broken banking infrastructure.”
Peer-to-peer platforms like Binance have surged in popularity as Venezuelans seek to store wealth and process remittances.
To avoid scrutiny, many users reportedly operate under aliases.
In a December report from a local news outlet, one resident working for a foreign company explained their process:
“I sell them and receive a deposit in my bank account in Venezuela,” the individual said.
“It is easy because you do not need to use a money changer. In the app you go to see who is buying and selling and, in less than 15 minutes, you make your transaction and that’s it.”
According to Chainalysis, 47% of transactions under $10,000 in Venezuela were conducted using stablecoins between July 2023 and July 2024.
“It is not about hype or speculation. It is about preserving basic purchasing power in a system that no longer offers it,” Lei added.
Pakistan: Bitcoin Energy Strategy
Facing financial strain in its national grid and rising electricity tariffs, Pakistan has devised a plan to monetize its underutilized power by creating a sovereign bitcoin reserve.
With rapid solar expansion, importing around 17 GW in 2024, Pakistan now faces energy oversupply due to grid inefficiencies and fixed costs.
With power plants operating below capacity and consumers abandoning the grid, the government is under pressure to repurpose surplus energy.
In June, the Pakistan Crypto Council (PCC) announced it would offer 2,000 megawatts of unused power plant capacity to attract foreign bitcoin miners and AI data center investors.
The South China Morning Post reported that analysts believe the strategy could help diversify the economy and act as a hedge against currency volatility.
World Liberty Financial has been announced as the first client of the PCC.
The Trump-owned stablecoin firm signed a letter of intent on April 26 to “accelerate blockchain innovation, stablecoin adoption and decentralized finance integration across Pakistan.”
Despite the initiative’s promise, experts warn that Pakistan’s aging grid and unreliable distribution could pose major hurdles to scaling mining operations.
Bolivia: Failed Crypto Plan for Energy Imports
Bolivia recently turned to crypto to address a severe dollar shortage and fuel crisis.
In March, Bolivia’s state-owned energy company, Yacimientos Petrolíferos Fiscales Bolivianos (YPFB), was authorized by the government to use crypto for fuel imports.
The move aimed to preserve national fuel subsidies amid declining domestic gas production and falling gas exports.
However, in May, the government banned YPFB from using crypto, citing concerns about speculative activity on platforms like Binance.
“YPFB has not conducted any transactions with cryptoassets; however, there has been considerable speculation surrounding this issue, which affects expectations regarding the exchange rate. This measure eliminates that distortion,” President Luis Arce stated.
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
